Hidden inside every chart is a story. A story about where the price has been and where it might go in the future. Some stories are obvious. Others are a little more difficult to figure out.
Indices Updated : 06:59:05
Thursday, June 28, 2007
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Hopes to see a technical rebound tomorrow, however Malaysia shares may extend losses on preweekend selling after shedding 0.5% to close at 1350.72. Although volume today remained relatively thin with less than 1 billion shares traded, market breadth still negative with decliners leading gainers 512 to 377 on continued ringgit weakness; due to selling pressure of foreign funds. Technical indicators remain bearish with MACD staging a bearish a crossover. The index could retrace to as low as 1343 (60-day moving average), KLCI ended below 30-day moving average for 1st time since mid-March. Crude oil jumped above $70 a barrel to a nine-month high in New York on speculation that U.S. inventories will slip as refineries increase output of gasoline and other fuels.
TOMYAM SHOPPING LIST
AYAMs TALK:
OSK Starts HELP At Buy, MYR1.18 Target
RHB Cuts Astro To Market Perform,Target To MYR4.92
TA Keeps Buy On United Malacca; Targets MYR7.70
Affin Starts Bonia With Buy; Targets MYR2.88
Kim Eng Ups Silverlake Axis Target To S$1.15; Buy
S&P Ups Salcon To Buy From Hold,Cuts Tgt To 99 Sen
Malaysia shares may extend losses tomorrow in follow through selling toward 1350 psychological support(1350-1360 range). Benchmark ended down 0.7% at 1357.43 in heavy volume with decliners trouncing gainers 685 to 223. Sell-down in blue chips and index-linked heavyweights by foreign funds on weakening ringgit and weaker regional markets cited as main catalysts. Local government-led funds helped to absorb some selling pressure, lifting the index off its low (1352.74) but retail investors continued to unwind positions and stay out of the market.
Malaysia shares may see a technical rebound tomorrow. If anything go wrong, the 1359 (30-day moving average) could offer firm support. Anyway there should be some windows dressing activities toward the end of June. KLCI shed 0.7% to end at 1366.99, off intraday low of 1363.90, in heavy volume with decliners outpacing gainers 641 to 282. We did not escape the effects of sharp declines U.S. stocks and regional markets. However, this pullback could be viewed as healthy profit-taking from the KLCI's recent rally (to record high of 1391.57 on Jun.22). Cautions, failure to hold 1359 support could drag KLCI back down to 1319.75 (May 25 low). Notes, some property stocks and handful of blue chips managed to buck trend. Asset reflation theme helped to lift the property counters while construction plays also on the move in anticipation of handful new contracts.
TOMYAM SHOPPING LIST click on image to enlarge
AYAM TALKs
Boustead Group Gains On Foreign Fund Interest
Multi Vest Susp'd;May Be Eyeing Indon Plantations
TA Has AMDB As Sell On Rally Based On Charts
TA Keeps Gamuda As Sell, MYR8.75 Target
Saudi Telecom To Buy 25% Stake In Maxis, 51% In PT Natrindo
Kim Eng Rates AMDB A Trading Buy, 44 Sen Target
Favco A Strong Buy Based On Charts - MIMB
Malaysia Proton Talks To Wrap Up By End 2007-Khazanah
Compugates Flat Despite 10:1 Share Split Plan
Equine Down On Bursa Caution
Sapuracrest; Seadrill Ups Stake To 11.27%
Tenaga, Eden Part Of JV In Sabah Pwr Plant Project
KLCI likely to consolidate within 1375-1385 range tomorrow in moderate volume after closing 1% lower at 1377.13 today; cautious tone followed declines in U.S. stocks Friday and softer start to regional bourses. Market breadth ended positive with advancers leading decliners 449 to 442, suggesting declines mitigated by mild bargain hunting. We had a hefty run-up in share prices last week to a record high of 1391.57. Weaker regional markets provided an ideal excuse to take profit.
TOMYAM SHOPPING LIST Click on image to enlarge
AYAM TALK:
Virgin Group Says Mulling Taking Stake In Malaysia FAX
PJ Dev A Strong Buy Based On Charts - MIMB
Jobstreet Up; Plans 2:1 Bonus, Main Bd Move
PSCI +18.4%; PN17 Exit Hopes, Turnaround Play
S&P Keeps AIRB As Hold, Ups Target to MYR1.40
Eden Up; Riding On IPP Growth Plans
Tamcorp Up On Core Business Sale Plan Report
MIMB Starts Eonmetall As Buy; Target MYR1.08
MIMB Starts Tanjung Offshore As Buy;MYR3.64 Target
KLCI likely to extend gains tomorrow in follow through trade and may retest record intraday high of 1391.41. Benchmark ended 1.69 points higher at 1387.96 in heavy volume; market breadth positive with gainers outpacing losers 484 to 387. We are a bit away from the psychological resistance of 1400. A strong performance on Wall Street tonight will be a good trigger if not die lor. Anticipate further gains in construction, property and oil & gas stocks. Notes rising trend in volume traded, suggesting buying momentum sustainable.
Most Asian stock markets advanced Thursday, snubbing a decline on Wall Street overnight, with shares in Japan and Taiwan hitting seven-year highs and Hong Kong and Singapore closing at new records. Tokyo's Nikkei 225 index advanced for a sixth day, adding 28.62 points, or 0.2%, on the Tokyo Stock Exchange to 18,240.30 points - the highest close since May 2, 2000. Steel makers and trading companies led the advance following the release of trade balance data, which showed that strong exports helped widen May's trade surplus. A recent depreciation in the yen, which inflates exporters' overseas earnings and make exports less expensive and more competitive, has helped buoy the market. The U.S. dollar, which rose to a four and a half year high of Y123.73 on Monday, rose to Y123.68 late Thursday, up from Y123.61 late Wednesday in New York. The euro dropped to US$1.3382.
KLCI likely to extend gains tomorrow in follow through trade, possibly rise to 1390-1400 range on persistent buying interest in construction, property and plantation stocks. KLCI ended +0.7% at 1386.27 at new record high in heavy volume; market breadth positive with gainers outpacing decliners 630 to 274. Gains in regional markets and firmer U.S. stocks overnight were key catalysts. Oil and gas related stocks also extended their bullish run. Lower-than-expected May inflation of 1.4% on year (vs. 1.6% expectation) likely to attract fresh buying interest in equities tomorrow.
TOMYAM SHOPPING LIST
AYAM's TALK:
May CPI +1.4% On Year Vs +1.6% Expected
Citigroup Ups Media Prima's Tgt To MYR3.40
TSH Edges Up On Indon Plantation Land Buy
Mycom Surges; Laggard Ppty, CPO Play
ECM Keeps Buy On AMMB; Ups Target To MYR5.34
Buy Samudra For MYR1.50 Medium-Term Target - TA Sec
Malaysia shares expected to rise in follow through trade tomorrow, possibly test upside (technical) target of 1383 after adding 0.3% to close at record high of 1376.79 today in moderate volume. Market breadth positive with gainers edging decliners 409 to 405. Firm interest in blue chips and government-linked companies helped benchmark to rise to uncharted territory despite intermittent profit taking. Buying interest in the broader market remained firm despite the steep declines in Transmile and Ranhill. Plantation, construction and property expected to lead gains in follow through trade.
Malaysia shares may test all time high of 1374.54 in follow-through buying tomorrow after rising 0.9% to close at intraday high of 1372.28 today, but anticipate profit-taking into strength may narrow gains. Range trade within 1365-1375 tipped. Wall Street's gains (Friday) helped to lift a number of blue chips, including construction, property and some finance stocks but profit-taking capped gains. Cautions, possible weakness in share prices of Ranhill and Transmile tomorrow on trade resumption could hurt sentiment. Ranhill +20.4% to MYR2.18 before suspension on StarBiz report of major oil find in Indonesia but company subsequently denied report.
TOMYAM SHOPPING LIST
AYAM's TALK:
Maxis To Suspend Share Trading From June 25
Buy Protasco On Weakness; Positive Technicals Target MYR1.20 to MYR1.22 -Aseam
Published on Reuters News, Bursa Malaysia may take action against Transmile "Bursa will not hesitate to take action against the companies should they be found to have made misleading announcements; and also against the directors if they had caused, aided, abetted or permitted the breach,"
So what is misleading announcements?
What if a reporter continues to publish misleading articles based on unconfirmed sources, time after time again?
Malaysia shares likely to consolidate within 1355-1370 range next week as players monitor Wall Street movements while element of caution expected ahead of Malaysia's May inflation data which due out Jun. 20. On Friday, KLCI added +0.3% to close at 1360.65 but off intraday high of 1362.58 in moderate volume as investors sold into strength ahead of weekend. Bargain hunting by funds helped some heavyweights while the oil & gas sector gained from positive newsflow.
TOMYAM SHOPPING LIST
AYAM'S TALKS:
S&P Keeps MRCB As Strong Buy, Ups Target to MYR3.03 from MY2.50
Malaysian former prime minister Mohamad Mahathir achieved some major coups for his country -- the Petronas Twin Towers, once the world's tallest buildings, loom over central Kuala Lumpur. The new government capital complex at Putrajaya has streets reminiscent of the grand boulevards of ancient Rome. And fast trains run from Kuala Lumpur to a gleaming new airport that Mahathir built.
But Mahathir created a climate of conflict with Anglo-Saxon investors and, in particular, Jewish financiers like George Soros, whom he once blamed for the Asian financial crisis of 1997-1998. Tough controls on foreign capital and curbs on the ringgit's convertibility, imposed after that crisis, didn't help. As a result, Kuala Lumpur's Bursa (stock market) has languished in global investing's backwaters for a decade. "After the Asian crisis, all my American clients simply closed their Malaysian accounts," recalls Cheston Chua, then a broker and now research chief for ECMLibra Avenue Securities, Malaysia's second-largest investment bank.
But now Mahathir is 82 and has been in and out of hospitals for heart-related problems. His successor, Abdullah Badawi, is beginning to steer a different course by easing capital controls and restrictions on foreign investments.
External trends also are blowing in the Bursa's favor -- a surge in commodity prices has been a boon because palm oil may become Asia's equivalent of ethanol. A political crisis in nearby Thailand means that fund managers are shifting dollars allocated for Southeast Asia into Malaysia. And the market's conviction that China is overpriced means that some funds are moving to less speculative markets. Malaysia's average P/E is about 17, versus 45 to 50 on China's frothy domestic exchanges. Corporate earnings are growing strongly too -- an estimated 18% this year. Last week, Malaysia reported surprisingly strong GDP growth of 5.3% for the first quarter.
Add it all up and the results are not surprising -- the Kuala Lumpur Composite Index is up 26% in U.S. dollars. Not including the currency effect, the market was up 13% last year and over 20% this year. "The market has been moving up on increased global interest from the beginning of this year," says Lorraine Tan, an equities analyst for Standard & Poor's based in Singapore. Adds Chua Hak Bin, director of Citigroup's Asia Pacific Economics and Market Analysis group: "We expect the overall momentum to be sustained."
Hedge funds, capitalizing on a combined currency and equity play, have helped drive those results. "These guys are smart," says Tan Chong Koay, founder and chief strategist of Pheim Asset Management (Asia), whose assets have just crossed $1 billion. "They know the U.S. currency will weaken and the Asian currencies are strengthening."
The conviction in Kuala Lumpur is that there is room left to run, so the question is which stocks to target. One obvious play: plantation companies such as Sime Darby (ticker: 4197.Malaysia), which is rated overweight by Bear Stearns. At the government's behest, Sime Darby is driving a consolidation of the country's three largest plantation companies and will become the world's largest plantation owner. S&P's Tan says weather conditions are "conducive for another good year" for palm-oil plantations but cautions that "for palm oil to be viable as an alternative, oil prices have to be at a certain level." Palm oil has traditionally been used mostly for cooking and soap, but Europeans are interested in using it as "biofuel" for vehicles because they don't have a large corn crop -- the source of America's ethanol.
Stocks recommended by Bear Stearns include Gamuda (5398.Malaysia), a builder of toll roads and tunnels; IJM (3336.Malaysia), which has construction contracts in Argentina, China, India, Pakistan and the Middle East; and Genting (3182.Malaysia), a gaming company with a license to build a casino in Singapore.
Would-be multinationals such as IJM are run primarily by ethnic Chinese and Indians, who see good prospects outside Malaysia. Wah Seong (5142.Malaysia), for example, a maker of coatings for pipeline and refinery pipes, is working in China and the Mideast. Another favorite is Tenaga Nasonal (5347.Malaysia), the national utility company. With the government having removed a 25% limit on foreign shareholding, its stock is up 38% in a year. Another hot area is financial services, as Malaysian banks such as Malayan Banking (MLYB) carve out roles in global Islamic finance.
One sector to avoid is automotive: the national car company Proton Holdings (5304.Malaysia) is faltering.
Institutions have no trouble buying Malaysian shares in Kuala Lumpur. Individual U.S. investors can trade Southeast Asia funds or pure-play Malaysian funds. One ETF is the iShares MSCI Malaysia Index (EWM) from Barclays Global Investors. And investors interested in a large- and small-cap blend will soon be able to buy into Tan's Pheim Asset Management group through Merrill Lynch.
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William J. Holstein is a veteran Asian correspondent. Assif Shameen covers Southeast Asia from Singapore.
Todays society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments.
Are you a stockaholic?
To find out if you are a stockaholic answer Yes or No to the 10 short questions below ...
1. do you check your stocks every day?
2. are you depressed on weekends, because the market is not open?
3. do you hate to go away on vacation because you will be out of touch with the market?
4. do you subscribe to more than 3 financial publications?
5. do you dream about stocks?
6. do you daydream about making a killing in the stock market?
7. do you think your stock broker is your best friend?
8. have you tried different stock market strategies, only to find out they didnt work?
9. do you wish you could consistently beat the market?
10. do you wish you could make more money in the stock market?
If you answered yes to all or most of the questions you are a stockaholic ... or a very good investor. If stocks are interfering with your ability to enjoy life ... or if you are not making enough money in the stock market ... get help.
As at 10.27pm (Malaysia), the Standard & Poor's 500 Index added 4.46, or 0.3 percent, to 1520.13 at 9:47 a.m. in New York. The Dow Jones Industrial Average increased 39.84, or 0.3 percent, to 13,522.19. The Nasdaq Composite Index advanced 9.88, or 0.4 percent, to 2592.19.
If DJIA could close on positive note, its can provide sufficient momentum in Bursa morning trade to drive a broad range of stocks higher. Malaysia shares expected to continue trading within 1350-1370 range tomorrow but investors may unwind positions ahead of the weekend.
As for today KLCI added +0.3% to close at 1357.18, from intraday high of 1362.25 in heavier-than- usual volume, triggered by strong gains on Wall Street overnight. Market breadth stayed positive; gainers led decliners 449 to 387 but profit-taking into strength very evident as stocks finished off highs. The oil and gas sector was the biggest beneficiary today while some bargain hunting in heavyweights kept the KLCI in positive territory. The benchmark index continued to be stuck in a very tight-range. There has been very little foreign participation recently. Utilities, property and oil & gas stocks feature prominently in today's most active list but intermittent profit-taking is also evident. The market is likely to stay in positive territory with rotational interest in oversold blue chips helping to keep the benchmark in positive territory.
As at 10.45pm Malaysia, U.S. stocks gained after retail sales jumped more than forecast and bond yields fell. Stocks plummeted yesterday after the benchmark bond yield soared to its highest since 2002. Treasury yields fell today even after the retail sales report and a higher-than-expected gain in import prices stoked inflation concerns. Positive retail sales numbers improve the prospects that the second quarter is going to be stronger than the first, which is what investors are looking for. With bond yields down, that should add more support to the market.
The Standard & Poor's 500 Index added 11.38, or 0.8 percent, to 1504.38 at 10:22 a.m. in New York. The Dow Jones Industrial Average increased 95.32, or 0.7 percent, to 13,390.33. The Nasdaq Composite Index advanced 14.15, or 0.6 percent, to 2563.92.
If the Dow Jones could maintain its positive mode until close, then Malaysia shares likely to rebound, testing the 1360, 1370 resistance tomorrow after falling 0.6% to close at 1353.03 in decent volume of 1.14 billion shares.
Most Asian markets rose Tuesday as Hong Kong shares edged up, but Japanese stocks slipped on profit-taking in nonlife insurance and shipping sectors following their recent gains. Investors seemed reluctant to take positions ahead of U.S. consumer and producer price data due later this week. Any results showing a risk of inflation would be negative for U.S. stocks because they could raise concern the U.S. Federal Reserve may raise interest rates, which could drag on Japanese shares. But if the U.S. price data shows inflation is contained, the (Dow Jones industrial average) may recover even more than its recent losses.
Malaysia shares likely to continue consolidating within 1353-1370 range tomorrow after inching up 0.2% to 1360.58 in moderate volume. Market breadth stayed negative; decliners led gainers 471 to 424 as profit-taking into strength dragged stocks off highs. A handful of heavyweights and some oil and gas stocks helped to lift the KLCI but sentiment remains cautious. Oil & gas stocks, construction and property plays likely to extend gains tomorrow but upside may be capped by profit-taking.
I think, Malaysia shares may continue to trade within 1352-1370 range tomorrow after rising 0.4% to 1357.66 in moderate volume triggered by Wall Street's gains Friday. Market breadth stayed positive with gainers leading decliners 604 to 317. However, profit-taking into strength likely to cap gains, much like today's trading pattern. Bargain hunting in blue chips and some heavyweights helped to lift the benchmark to an intraday high of 1367.94 but some caution is being exercised ahead of (U.S.) CPI data. Expects oil & gas stocks to continue to dominate gainers while rotational interest in construction and property stocks may keep market buoyant.
I think, KLCI may bounce-off 1351 (30-day moving average) and rebound on bargain hunting next week to around 1360 after shedding 0.9% to close at 1352.39 on Wall Street slump overnight but dealers caution profit-taking into strength may keep benchmark within tight range. Concerns over inflation and a potential rate hike in the U.S. weighed on market sentiment but some bargain hunting activity was evident. Investors will continue to look at the performance of U.S. and China stocks but any weakness in share prices could be an opportunity to accumulate, esp oil & gas sector, plantation stocks and government-linked construction stocks.
SUNWAY I think, buy on deep lah. Support 1.35. Overall, the bias in prices is: Upwards. Short term: Prices are moving. The projected upper bound is: 1.69. The projected lower bound is: 1.34.
CHAP AYAM GROUP members would like to congratulate and extend our best wishes to Pak Lah and Jeanne Abdullah on the happy occasion today.
May God bless PAK LAH and his newly extended family. We congratulate you on your decision to take your next step in life. Actually, uou’re one lucky guy, Pak Lah! We are jealous! Hopefully as a happier person now, you will make more meaningful contributions to the nation.. and also our warmest felicitations to you and Ms Jeanne Abdullah on the marriage. We are sure that your new life partner will now play an important role in providing inspiration and strength for you to achieve your dreams and goals for the nation.
It's about time our nation's top leader has a woman by his side again to give him strength, courage and inspiration. History has shown that a single woman can launch a thousand ships. Perhaps, with the new First Lady we will be able to witness a similar launch as well as the execution of thousand of policies to benefit the nation.
Last but not least:
The Prime Minister gets married, Ah, the punters are now less worried, Love and happiness are now embodied, A joyous union, yes! a higher KLCI now fancied!
Want to know what the stock market looks like these days when viewed through the prism of a technical analyst's charts?
"The market is full of frustrated bears," says John Roque, senior technical analyst at Natexis Bleichroeder, a New York-based investment dealer. "But they're not going to get any satisfaction anytime soon, even if this market is equally full of dissatisfied bulls. No one is running around waving their hands in the air and yelling 'yippee' in excitement" in response to the market's big gains this spring.
Yes, the technical analysts -- those folks who scrutinize price charts and trading volume in search of clues as to which market, industry group or stock is poised to generate outsize returns or tank -- are no more ready to return to the irrational exuberance of a decade ago than their counterparts, the fundamental analysts. Both camps, it seems, are united in a wary acceptance of the market's recent gains.
More than a hundred devotees of the art of technical market analysis showed up two weeks ago to listen to Roque and some of his fellow trend-chasers discuss what investment opportunities they can detect in the midst of the rally. Few of the speakers are household names to most investors, with the possible exception of Ralph Acampora. He made his name as one of the Street's biggest bulls back in the 1990s, when he correctly predicted that the Dow Jones Industrial Average would smash through milestone after milestone on its way to 10,000. In 1997, Acampora's grateful boss, then-Prudential Securities CEO Hardwick Simmons, presented him with a vintage red 1962 Corvette, wrapped in a white bow and with a license plate reading Dow 7000, one of the milestones the market eclipsed along the way.
A decade later, Acampora plies his trade at Knight Equity Markets, two years after Prudential axed its technical research department. And his charts are telling him something interesting right now: Large-cap stocks -- names like Xerox (ticker: XRX), Schering Plough (SGP), Qwest Communications (Q) and Verizon Communications (VZ) that have been out of favor for years -- are showing signs of new life.
Eyeing those companies' stock charts, he says, it's easy to spot the "smile patterns" taking shape: a sharp price decline, followed by a flat line, and finally, an upturn. "I see those smile patterns emerge, and I just want to grin myself," he says. "When you have a huge base" -- that's tech-speak for a long period when a stock languishes in a narrow trading range -- "you can see giant moves; doubles, even triples. And you see them last for two, three years."
Of course, there are some frowns taking shape as well. Onetime market darlings like Starbucks (SBUX) and Whole Foods (WFMI) may have had their day in the sun, Acampora cautions. "But that kind of rotation just feeds a bull market," he argues.
Indeed, many market technicians say they're spending a lot of time trying to talk their clients out of being too bearish. "I point out that bear markets are very rare, and when the Dow comes out of a bear market it goes into a 20-year bull market," Merrill Lynch's Mary Ann Bartels told an eager audience. With the Dow having finally broken out of an eight-year-long trading range and moved higher, Bartels said she would advise her clients to use any pullbacks to add exposure to large-cap stocks.
If there is one trait that sets a technical analyst aside, it is his or her devotion to the concept that historical data patterns can help predict the future. Fighting those patterns, on the other hand, is a recipe for disaster. "If you want to make one mistake consistently that will end your career, fight the trend," says Jeff deGraaf, head of technical research at New York-based investment research group ISI. "Right now, that trend is obviously for the market to move still higher."
Not that there aren't risks out there. DeGraaf is paying close attention to the Chinese stock market, which he calls "one of the most artificially propped-up markets in the world," thanks to the Chinese government's policy of pegging its currency, the yuan, to the dollar at a level widely regarded as well below fair market value.
The result is a liquidity-driven boom in Chinese stock prices, and while deGraaf says it may take months for that market to implode or deflate, he expects it will happen. "That is the looming danger in global markets," he predicts. So he's keeping a close eye on the Shanghai Stock Exchange, which has been rising steadily higher than 200-day moving average. The more that happens, the greater the risk.
For his part, Roque is betting on commodities as the best way to play a global liquidity boom. He has studied the price patterns of gold relative to the Dow Jones Industrial Average dating back more than a century. While some fundamental analysts argue that the precious metal's run is due to run out of steam soon, Roque says his reading of those absolute and relative price moves suggests that it may be only halfway over.
"We're going into the eighth year in which gold has outperformed the Dow," he points out. "There have been two prior cycles like this, and both have been 14 years in length."
He's also a fan of the energy sector. Despite their big gain in response to higher commodity prices, energy stocks still make up only 10% of the S&P 500. (For more on this group's outlook, see page 44.) Roque says historically, the sector has averaged a 12% weighting. "The charts tell the story to anyone who cares to look."
Markets in Asia were mixed Thursday as concerns on higher interest rates dragged most benchmarks into the negative territory. But Chinese shares extended a rebound from sharp losses earlier in the week after reports doused speculation over a possible capital gains tax. The benchmark Shanghai Composite Index rose 3% to 3,890.80. The Shenzhen Composite Index of China's second, smaller market jumped 3.7% to 1,126.84.
KLCI likely stay in 1360-1370 range tomorrow in cautious trade with retail investors seeking to unwind positions and lock-in profits ahead of the weekend. Benchmark ended down 0.6% at 1364.41, weighed down by steep decline in U.S. stocks overnight but bargain hunting on dips helped narrow losses. No doubt investors will be closely monitoring the performance of the DJIA tonight but trading bias is likely to be on the sell side. Oil & gas sector, plantation stocks and government-linked construction and property stocks may attract bargain hunting on any weakness tomorrow.
TOMYAM SHOPPING LIST
AYAM TALK TODAY
ECM Keeps Buy On Notion VTEC; 61 Sen Tgt
Volkswagen, Sime Darby: No Plans To Buy Proton Stakes
LRT Expansion To Boost Construction Plays - CLSA
S&P Keeps Choo Bee As Strong Buy; MYR2.90 Target
Guocoland A Strong Buy Based on Charts - MIMB
RHB Ups Proton To Trading Buy; Fair Value MYR8.60
Courts Suspended;ARG Makes Offer At MYR1.02/Shr (Who the heck said RM1.20)
S&P Research Ups Padini To Buy;Pft Above Estimates
KLCI ends +0.7% at 1369.59 in heavier than usual volume, recovering from an intraday low of 1354.93 as investors take cue from recovery in China shares to accumulate stocks across all sectors. Market breadth turned positive in late trade; gainers beat decliners 665 to 208. Share price movements are mirroring the acrobatic moves in Chinese equities although the swings are not as volatile. The market is likely to remain equally volatile tomorrow but follow through trade could carry the KLCI to a fresh record high (current record stands at 1374.54). Tips 1355-1375 range.
TOMYAM SHOPPING LIST
AYAM TALK:
Proton Edges Up On Tie-Up Hopes; MYR6 Cap
S&P Cuts Satang To Sell From Strong Buy
S&P Ups Muhibbah Target To MYR7.10; Keeps Hold
DNP Up; UOB's Buy Rating, MYR4.30 Tgt Cited
IJM Down As KEuro 25% Stake Buy Nears
Crude Oil Gains May Help Boost Palm Oil Prices
CS Stays Overweight On Malaysia Equities
Citi Keeps TA Enterprise At Buy, MYR2.75 Target
Citi Keeps Sell On Plus; Targets MYR2.90
Govt, VW Officals To Meet This Week On Proton-Report
More momentum needed to push above the 1370 resistance for Uptrend continuation. Volume still low.
Overall, the bias is: Upwards. Short term: stalling. Intermediate term: trending. The projected upper bound is: 1,391.79. The projected lower bound is: 1,334.54.
As at Friday, KLCI ends +1% at 1360.07 in thin volume, rebounding from intraday low of 1346.21 on bargain hunting by both local and foreign funds. Market breadth positive with gainers leading decliners 554 to 277. The resilient China market and gains on Asian bourses help to attract fresh funds into equities. Although volume traded remained thin, the market's gains overshadowed the Transmile issue despite the stock plunging 32.6% to MYR6.
FRIDAY AYAM TALK:
PLUS To Buy Elite, Linkedua For MYR866M
Volkswagen: Proton Talks On Strategic Tie-up To Continue
BCHB:SBB Assets Had Been Overstated By About MYR160M
Khazanah: Hopes To Name Proton Partner In 3 Months (1st round sudah kencing kuat- 2nd round mau kena lagi ka .... heh heh LOL)
I'm a hardcore Technical Analysis Trader in the Malaysian stock-broking industry. This is a personal weblog, reflecting my personal views and not the views of anyone or any organization. THIS BLOG ALSO DEDICATED TO MY SUBSCRIBERS WHO HAVE ENCOURAGED ME AND TO THE THOUGHTFUL TRADERS WHO DESIRE TO FOLLOW PRACTICAL RULES FOR TRADING INSTEAD OF GUESSWORK AND GAMBLING METHODS.
Hopes to see a technical rebound tomorrow, however Malaysia shares may extend losses on preweekend selling after shedding 0.5% to close at 1350.72. Although volume today remained relatively thin with less than 1 billion shares traded, market breadth still negative with decliners leading gainers 512 to 377 on continued ringgit weakness; due to selling pressure of foreign funds. Technical indicators remain bearish with MACD staging a bearish a crossover. The index could retrace to as low as 1343 (60-day moving average), KLCI ended below 30-day moving average for 1st time since mid-March. Crude oil jumped above $70 a barrel to a nine-month high in New York on speculation that U.S. inventories will slip as refineries increase output of gasoline and other fuels.
